Explain, with examples, the significance of the value of a goods cross-elasticity of demand in relation to its substitutes and complements. [8]

Explain, with examples, the significance of the value of a good’s cross-elasticity of demand in relation to its substitutes and complements. [8]
The term cross-elasticity of demand is a measure of the responsiveness of the quantity demand of a good in relation to a change in the price of another good, and is measured by dividing the percentage change in the quantity demanded of a good by the percentage change in the price of another good. As such, a negative value indicated complements while a positive value indicates substitutes. Beyond this, the magnitude of the value will indicate how strong the relationship is between the two products, a higher value would indicate very close complements or substitutes while a lower value would indicate a weak relationship.
